In today’s budget speech, several of Gov. Murphy’s proposals begin to steer New Jersey toward the stronger economy he envisions and that we all want.
We applaud the changes he proposes to the public employee and retiree benefit programs and the reduction in state government expenses which will save more than $1 billion.
We agree with his proposed investments in education and infrastructure, and we support the strengthening of economic investment programs to retain and attract business to New Jersey.
However, the N.J. Chamber strongly opposes the governor’s proposal to increase the tax rate on those who make the investments and create new jobs in New Jersey.
New Jersey cannot afford yet another tax increase and the N.J. Chamber believes the $447 million - out of a $38.6 billion budget - to be raised by this tax increase can be found through a more aggressive and much-needed cost efficiency initiative across all of state government.
The pain from this new tax would be severely disproportionate to its benefit.
New Jersey is already experiencing a serious outmigration of its most wealthy citizens – the ones who make the investments to create businesses and jobs.
This tax increase will prompt more of these citizens to leave New Jersey, exacerbating our outmigration issue and assuring that revenue from this tax is a “one shot” collection which the governor has rightly said should be avoided.
All this tax will do is make New Jersey less competitive and less affordable. Combining this tax with the tax increases and fiscal mandates in 2018 will all but eliminate New Jersey as a destination of choice for business and the jobs these businesses would create.
We urge Gov. Murphy and state legislative leaders to take tax increases off the table.
The N.J. Chamber continues to believe that the proven way to attract and retain business is to reduce the tax burden on our business community, and the faster we begin to discuss ways of doing this, the better.